Bermuda
(State or other jurisdiction
of incorporation)
|
001-16625
(Commission File Number)
|
98-0231912
(I.R.S. Employer
Identification Number)
|
50 Main Street
White Plains, New York
(Address of principal executive offices)
|
10606
(Zip code)
|
Exhibit No.
|
Description
|
99.1
|
Press Release, dated July 28, 2016
|
BUNGE LIMITED
|
||||
By:
|
/s/ Andrew J. Burke
|
|||
Name:
|
Andrew J. Burke
|
|||
Title:
|
Chief Financial Officer
|
Exhibit No.
|
Description
|
99.1
|
Press Release, dated July 28, 2016
|
·
|
Q2 GAAP EPS of $0.81, up $0.31 vs. last year
|
·
|
Higher results driven by improvement in Grains, favorable Oilseeds mark-to-market and volume and margin gains in Milling
|
·
|
Combined Agri-Foods trailing four quarter ROIC of 9.6%; 2.6 points over WACC
|
·
|
Continue to expect full-year 2016 EPS growth
|
„
|
Financial Highlights
|
Quarter Ended
|
Six Months Ended
|
|||
|
||||
US$ in millions, except per share
data |
6/30/16
|
6/30/15
|
6/30/16
|
6/30/15
|
Net income attributable to Bunge
|
$121
|
$86
|
$356
|
$349
|
Net income (loss) per common share from continuing operations-diluted
|
$0.81
|
$0.50
|
$2.43
|
$2.11
|
Net income (loss) per common share from continuing operations-diluted, adjusted (a)
|
$0.79
|
$0.51
|
$2.23
|
$2.12
|
Total Segment EBIT (a)
|
$205
|
$167
|
$527
|
$540
|
Certain gains & (charges) (b)
|
$(12)
|
$15
|
$(12)
|
$15
|
Total Segment EBIT, adjusted (a)
|
$217
|
$152
|
$539
|
$525
|
Agribusiness (c)
|
$180
|
$134
|
$462
|
$464
|
Oilseeds
|
$56
|
$63
|
$194
|
$305
|
Grains
|
$124
|
$71
|
$268
|
$159
|
Food & Ingredients (d)
|
$35
|
$29
|
$87
|
$101
|
Sugar & Bioenergy
|
-
|
$(12)
|
$(14)
|
$(35)
|
Fertilizer
|
$2
|
$1
|
$4
|
$(5)
|
(a)
|
Total Segment earnings before interest and tax (“Total Segment EBIT”); Total Segment EBIT, adjusted; net income (loss) per common share from continuing operations-diluted, adjusted and ROIC are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables attached to this press release and the accompanying slide presentation posted on Bunge’s website.
|
(b)
|
Certain gains & (charges) included in Total Segment EBIT. See Additional Financial Information for detail.
|
(c)
|
See footnote 9 of Additional Financial Information for a description of the Oilseeds and Grains businesses in Bunge’s Agribusiness segment.
|
(d)
|
Includes Edible Oil Products and Milling Products segments.
|
„
|
Overview
|
„
|
Second Quarter Results
|
„
|
Outlook
|
„
|
Conference Call and Webcast Details
|
„
|
About Bunge Limited
|
„
|
Cautionary Statement Concerning Forward-Looking Statements
|
Investor Contact:
Mark Haden
Bunge Limited
914-684-3398
mark.haden@bunge.com
|
Media Contact:
Susan Burns
Bunge Limited
914-684-3246
susan.burns@bunge.com
|
„
|
Additional Financial Information
|
(In millions, except per share data)
|
Net Income (loss)
Attributable to |
Earnings
Per Share- |
Total
Segment EBIT (5)
|
|||||||||||||||||||||
Quarter Ended June 30:
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||
Continuing operations:
|
||||||||||||||||||||||||
Agribusiness:
|
||||||||||||||||||||||||
Impairment of intangible asset(1)
|
$ | (8 | ) | $ | - | $ | (0.06 | ) | $ | - | $ | (12 | ) | $ | - | |||||||||
Reversal of export tax contingency (2)
|
- | 19 | - | 0.13 | - | 30 | ||||||||||||||||||
Edible Oil Products:
|
||||||||||||||||||||||||
Impairment of packaged oil facility(3)
|
- | (10 | ) | - | (0.07 | ) | - | (15 | ) | |||||||||||||||
Income Tax:
|
||||||||||||||||||||||||
Income tax benefits (charges) (4)
|
11 | (10 | ) | 0.08 | (0.07 | ) | - | - | ||||||||||||||||
Total
|
$ | 3 | $ | (1 | ) | $ | 0.02 | $ | (0.01 | ) | $ | (12 | ) | $ | 15 |
(In millions, except per share data)
|
Net Income (loss)
Attributable to |
Earnings
Per Share |
Total Segment
EBIT (5) |
|||||||||||||||||||||
Six Months Ended June 30:
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||
Agribusiness:
|
||||||||||||||||||||||||
Impairment of intangible asset(1)
|
$ | (8 | ) | $ | - | $ | (0.05 | ) | $ | - | $ | (12 | ) | $ | - | |||||||||
Reversal of export tax contingency (2)
|
- | 19 | - | 0.13 | - | 30 | ||||||||||||||||||
Edible Oil Products:
|
||||||||||||||||||||||||
Impairment of packaged oil facility(3)
|
- | (10 | ) | - | (0.07 | ) | - | (15 | ) | |||||||||||||||
Income Tax:
|
||||||||||||||||||||||||
Income tax benefits (charges) (4)
|
39 | (10 | ) | 0.25 | (0.07 | ) | - | - | ||||||||||||||||
Total
|
$ | 31 | $ | (1 | ) | $ | 0.20 | $ | (0.01 | ) | $ | (12 | ) | $ | 15 |
Consolidated Earnings Data (Unaudited)
|
Quarter Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Net sales
|
$ | 10,541 | $ | 10,782 | $ | 19,457 | $ | 21,588 | ||||||||
Cost of goods sold
|
(10,011 | ) | (10,247 | ) | (18,307 | ) | (20,343 | ) | ||||||||
Gross profit
|
530 | 535 | 1,150 | 1,245 | ||||||||||||
Selling, general and administrative expenses
|
(303 | ) | (361 | ) | (617 | ) | (692 | ) | ||||||||
Foreign exchange gains (losses)
|
(6 | ) | 16 | 15 | 9 | |||||||||||
Other income (expense)−net
|
(13 | ) | (9 | ) | (18 | ) | (8 | ) | ||||||||
EBIT attributable to noncontrolling interest (a) (6)
|
(3 | ) | (14 | ) | (3 | ) | (14 | ) | ||||||||
Total Segment EBIT (5)
|
205 | 167 | 527 | 540 | ||||||||||||
Interest income
|
14 | 13 | 24 | 24 | ||||||||||||
Interest expense
|
(59 | ) | (57 | ) | (116 | ) | (110 | ) | ||||||||
Income tax (expense) benefit (1)(2)(3)(4)
|
(39 | ) | (45 | ) | (73 | ) | (130 | ) | ||||||||
Noncontrolling interest share of interest and tax (a) (6)
|
4 | 7 | 7 | 10 | ||||||||||||
Income from continuing operations, net of tax
|
125 | 85 | 369 | 334 | ||||||||||||
Income (loss) from discontinued operations, net of tax
|
(4 | ) | 1 | (13 | ) | 15 | ||||||||||
Net income attributable to Bunge (6)
|
121 | 86 | 356 | 349 | ||||||||||||
Convertible preference share dividends and other obligations
|
(12 | ) | (14 | ) | (25 | ) | (28 | ) | ||||||||
Net income available to Bunge common shareholders
|
$ | 109 | $ | 72 | $ | 331 | $ | 321 | ||||||||
Net income (loss) per common share diluted attributable to Bunge common shareholders (7):
|
||||||||||||||||
Continuing operations
|
$ | 0.81 | $ | 0.50 | $ | 2.43 | $ | 2.11 | ||||||||
Discontinued operations
|
(0.03 | ) | - | (0.09 | ) | 0.10 | ||||||||||
Net income (loss) per common share - diluted
|
$ | 0.78 | $ | 0.50 | $ | 2.34 | $ | 2.21 | ||||||||
Weighted–average common shares outstanding - diluted
|
140 | 145 | 148 | 145 | ||||||||||||
(a) The line items “EBIT attributable to noncontrolling interest” and “Noncontrolling interest share of interest and tax” when combined represent consolidated Net loss (income) attributed to noncontrolling interests on a U.S. GAAP basis of presentation.
|
Consolidated Segment Information (Unaudited)
|
|||||||||
Set forth below is a summary of certain earnings data and volumes by reportable segment.
|
Quarter Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
(In millions, except volumes)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Volumes (in thousands of metric tons):
|
||||||||||||||||
Agribusiness
|
33,944 | 32,802 | 66,697 | 64,046 | ||||||||||||
Edible Oil Products
|
1,742 | 1,668 | 3,344 | 3,273 | ||||||||||||
Milling Products
|
1,136 | 992 | 2,242 | 2,072 | ||||||||||||
Sugar & Bioenergy
|
2,116 | 2,780 | 4,039 | 4,996 | ||||||||||||
Fertilizer
|
249 | 216 | 415 | 333 | ||||||||||||
Net sales:
|
||||||||||||||||
Agribusiness
|
$ | 7,524 | $ | 7,744 | $ | 13,807 | 15,655 | |||||||||
Edible Oil Products
|
1,705 | 1,667 | 3,231 | 3,315 | ||||||||||||
Milling Products
|
422 | 409 | 813 | 855 | ||||||||||||
Sugar & Bioenergy
|
809 | 881 | 1,467 | 1,628 | ||||||||||||
Fertilizer
|
81 | 81 | 139 | 135 | ||||||||||||
Total
|
$ | 10,541 | $ | 10,782 | $ | 19,457 | 21,588 | |||||||||
Gross profit:
|
||||||||||||||||
Agribusiness
|
$ | 343 | $ | 360 | $ | 773 | 866 | |||||||||
Edible Oil Products
|
87 | 85 | 199 | 199 | ||||||||||||
Milling Products
|
68 | 57 | 123 | 127 | ||||||||||||
Sugar & Bioenergy
|
25 | 25 | 41 | 46 | ||||||||||||
Fertilizer
|
7 | 8 | 14 | 7 | ||||||||||||
Total
|
$ | 530 | $ | 535 | $ | 1,150 | 1,245 | |||||||||
Selling, general and administrative expenses:
|
||||||||||||||||
Agribusiness
|
$ | (160 | ) | $ | (201 | ) | $ | (337 | ) | (385 | ) | |||||
Edible Oil Products
|
(82 | ) | (89 | ) | (161 | ) | (170 | ) | ||||||||
Milling Products
|
(32 | ) | (34 | ) | (61 | ) | (65 | ) | ||||||||
Sugar & Bioenergy
|
(24 | ) | (30 | ) | (49 | ) | (60 | ) | ||||||||
Fertilizer
|
(5 | ) | (7 | ) | (9 | ) | (12 | ) | ||||||||
Total
|
$ | (303 | ) | $ | (361 | ) | $ | (617 | ) | (692 | ) | |||||
Foreign exchange gain (loss):
|
||||||||||||||||
Agribusiness
|
$ | (4 | ) | $ | 26 | $ | 20 | $ | 24 | |||||||
Edible Oil Products
|
(1 | ) | (1 | ) | (2 | ) | 4 | |||||||||
Milling Products
|
(4 | ) | (2 | ) | (5 | ) | (4 | ) | ||||||||
Sugar & Bioenergy
|
3 | (7 | ) | 3 | (15 | ) | ||||||||||
Fertilizer
|
- | - | (1 | ) | - | |||||||||||
Total
|
$ | (6 | ) | $ | 16 | $ | 15 | $ | 9 | |||||||
Segment EBIT:
|
||||||||||||||||
Agribusiness
|
$ | 168 | $ | 164 | $ | 450 | $ | 494 | ||||||||
Edible Oil Products
|
2 | (6 | ) | 32 | 30 | |||||||||||
Milling Products
|
33 | 20 | 55 | 56 | ||||||||||||
Sugar & Bioenergy
|
- | (12 | ) | (14 | ) | (35 | ) | |||||||||
Fertilizer
|
2 | 1 | 4 | (5 | ) | |||||||||||
Total (5)
|
$ | 205 | $ | 167 | $ | 527 | $ | 540 |
Condensed Consolidated Balance Sheets (Unaudited)
|
June 30,
|
December 31,
|
|||||
(In millions)
|
2016
|
2015
|
||||
Assets
|
||||||
Cash and cash equivalents
|
$
|
548
|
$
|
411
|
||
Time deposits under trade structured finance program
|
277
|
325
|
||||
Trade accounts receivable, net
|
1,683
|
1,607
|
||||
Inventories (8)
|
5,966
|
4,466
|
||||
Other current assets
|
5,394
|
4,107
|
||||
Total current assets
|
13,868
|
10,916
|
||||
Property, plant and equipment, net
|
5,083
|
4,736
|
||||
Goodwill and other intangible assets, net
|
769
|
744
|
||||
Investments in affiliates
|
337
|
329
|
||||
Time deposits under trade structured finance program
|
363
|
-
|
||||
Other non-current assets
|
1,675
|
1,189
|
||||
Total assets
|
$
|
22,095
|
$
|
17,914
|
||
Liabilities and Equity
|
||||||
Short-term debt
|
$
|
1,629
|
$
|
648
|
||
Current portion of long-term debt
|
963
|
869
|
||||
Letter of credit obligations under trade structured finance program
|
640
|
325
|
||||
Trade accounts payable
|
2,805
|
2,675
|
||||
Other current liabilities
|
4,278
|
2,823
|
||||
Total current liabilities
|
10,315
|
7,340
|
||||
Long-term debt
|
3,388
|
2,926
|
||||
Other non-current liabilities
|
1,052
|
959
|
||||
Total liabilities
|
14,755
|
11,225
|
||||
Redeemable noncontrolling interest
|
40
|
37
|
||||
Total equity
|
7,300
|
6,652
|
||||
Total liabilities and equity
|
$
|
22,095
|
$
|
17,914
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
Six Months Ended
|
||||||||
June 30,
|
||||||||
(In millions)
|
2016
|
2015
|
||||||
Operating Activities
|
||||||||
Net income (6)
|
$ | 352 | $ | 353 | ||||
Adjustments to reconcile net income to cash provided by (used for) operating activities:
|
||||||||
Impairment charges
|
14 | 21 | ||||||
Foreign exchange loss (gain) on debt
|
118 | (182 | ) | |||||
Depreciation, depletion and amortization
|
254 | 267 | ||||||
Deferred income taxes
|
82 | 60 | ||||||
Other, net
|
46 | 18 | ||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions:
|
||||||||
Trade accounts receivable, net
|
39 | (192 | ) | |||||
Inventories
|
(1,250 | ) | (125 | ) | ||||
Secured advances to suppliers
|
265 | (118 | ) | |||||
Advances on sales
|
(106 | ) | (143 | ) | ||||
Net unrealized gain/loss on derivative contracts
|
34 | (198 | ) | |||||
Margin deposits
|
(117 | ) | (118 | ) | ||||
Trade accounts payable and accrued liabilities
|
(272 | ) | 215 | |||||
Other, net
|
(143 | ) | (158 | ) | ||||
Cash provided by (used for) operating activities
|
(684 | ) | (300 | ) | ||||
Investing Activities
|
||||||||
Payments made for capital expenditures
|
(275 | ) | (222 | ) | ||||
Acquisitions of businesses (net of cash acquired)
|
- | (52 | ) | |||||
Proceeds from sale of investments
|
449 | 199 | ||||||
Payments for investments
|
(436 | ) | (134 | ) | ||||
Settlement of net investment hedges
|
(115 | ) | - | |||||
Payments for investments in affiliates
|
(20 | ) | (17 | ) | ||||
Other, net
|
(20 | ) | - | |||||
Cash provided by (used for) investing activities
|
(417 | ) | (226 | ) | ||||
Financing Activities
|
||||||||
Net proceeds (repayments) of short-term debt
|
1,007 | 652 | ||||||
Net proceeds (repayments) of long-term debt
|
547 | 307 | ||||||
Proceeds from sale of common shares
|
- | 25 | ||||||
Repurchase of common shares
|
(200 | ) | (200 | ) | ||||
Dividends paid
|
(124 | ) | (116 | ) | ||||
Other, net
|
(18 | ) | (17 | ) | ||||
Cash provided by (used for) financing activities
|
1,212 | 651 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
26 | (61 | ) | |||||
Net increase (decrease) in cash and cash equivalents
|
137 | 64 | ||||||
Cash and cash equivalents, beginning of period
|
411 | 362 | ||||||
Cash and cash equivalents, end of period
|
$ | 548 | $ | 426 |
„
|
Definition and Reconciliation of Non-GAAP Measures
|
Quarter Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Total Segment EBIT
|
$ | 205 | $ | 167 | $ | 527 | $ | 540 | ||||||||
Interest income
|
14 | 13 | 24 | 24 | ||||||||||||
Interest expense
|
(59 | ) | (57 | ) | (116 | ) | (110 | ) | ||||||||
Income tax expense
|
(39 | ) | (45 | ) | (73 | ) | (130 | ) | ||||||||
Income (loss) from discontinued operations, net of tax
|
(4 | ) | 1 | (13 | ) | 15 | ||||||||||
Noncontrolling interest share of interest and tax
|
4 | 7 | 7 | 10 | ||||||||||||
Net income (loss) attributable to Bunge
|
$ | 121 | $ | 86 | $ | 356 | $ | 349 |
„
|
Net Income (loss) per common share from continuing operations–diluted, adjusted
|
Quarter Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Continuing operations:
|
||||||||||||||||
|
||||||||||||||||
Net income (loss) per common share – diluted, adjusted
(excluding certain gains & charges and discontinued operations) |
$ | 0.79 | $ | 0.51 | $ | 2.23 | $ | 2.12 | ||||||||
|
||||||||||||||||
Certain gains & charges (see Additional Financial
Information section) |
0.02 | (0.01 | ) | 0.20 | (0.01 | ) | ||||||||||
Net income (loss) per common share from continuing operations
|
0.81 | 0.50 | 2.43 | 2.11 | ||||||||||||
Discontinued operations:
|
(0.03 | ) | - | (0.09 | ) | 0.10 | ||||||||||
Net income (loss) per common share-diluted
|
$ | 0.78 | $ | 0.50 | $ | 2.34 | $ | 2.21 |
„
|
Notes
|
(1)
|
2016 EBIT includes a pre-tax impairment charge of $12 million related to remaining unamortized carrying value of certain patents, recorded in the second quarter.
|
(2)
|
2015 EBIT includes a pre-tax reversal of an export tax contingency of $30 million recorded during the second quarter.
|
(3)
|
2015 EBIT includes a pre-tax impairment charge of $15 million related to the announced closure of a U.S. packaged oil plant, recorded during the second quarter.
|
(4)
|
2016 income tax benefits (charges) include benefits of $60 million, net of reserves, recorded in the first quarter for the change in a tax election for North America and $11 million related to tax credits in Spain recorded in the second quarter, offset by a charge of $(32) million for an uncertain tax position related to Asia recorded in the first quarter.
|
(5)
|
See Reconciliation of Non-GAAP Measures.
|
(6)
|
A reconciliation of net income attributable to Bunge to net income (loss) is as follows:
|
Six Months Ended
|
||||||||
June 30,
|
||||||||
2016
|
2015
|
|||||||
Net income attributable to Bunge
|
$ | 356 | $ | 349 | ||||
EBIT attributable to noncontrolling interest
|
3 | 14 | ||||||
Noncontrolling interest share of interest and tax
|
(7 | ) | (10 | ) | ||||
Net income (loss)
|
$ | 352 | $ | 353 | ||||
(7)
|
Approximately 4 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and six months ended June 30, 2016. Approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of common shares outstanding for the three months ended June 30, 2016.
|
(8)
|
Includes readily marketable inventories of $5,033 million and $3,666 million at June 30, 2016 and December 31, 2015, respectively. Of these amounts $3,881 million and $2,513 million, respectively, are attributable to merchandising activities.
|
(9)
|
The Oilseed business included in our Agribusiness segment consists of our global activities related to the crushing of oilseeds (including soybeans, canola, rapeseed and sunflower seed) into protein meals and vegetable oils; the trading and distribution of oilseeds and oilseed products; and biodiesel production, which is primarily conducted through joint ventures.
|